Make russias covert vaccine the countries of foreign minister exclusively tells our team why tehran is supporting sputnik the. Russian the russian reconstruction in a very bad experience with another country that i do not want to name. Those are your headlines this hour the kaiser report is next on our Show International and the u. K. And ireland prepare for. Hi im max tazz or this is the kaiser report so much going on lets check in with stacy right max you know how history rhymes might not necessarily repeat exactly but it certainly rhymes and were seeing flash back to the seventys these days so the most important question for me is should i get a feather haircut or a perm staying alive staying alive the old saying are you much of it because copyright is certainly much stronger since the seventys but what do you feel about oh yeah my wife sudha i got them colored tiles of my basement practice in the house all the way raw it was practicing the hustle google that but i think ill do the feather haircut unless people in the audience out there if you say no she should get a perm and said well then ill get a perm but in the meantime i want to say you know inflation is back if you lived through the seventys you remember the inflation you remember the long lines and you remember the disco well inflation is spreading broadly into the economy amid surging costs Companies Raise prices and customers pay them despite weak economy 10000000 missing jobs the signs of inflation building up in the economy are now everywhere i h s markets in this release of the flash p. M. I. With data from companies in the services and manufacturing sectors added to that pile of evidence and increasingly max companies are able to pass higher input prices on to their customers meaning their customers are not totally balking at paying higher prices and theyre not switching to other sources to dodge those price increases thats a mindset that nurtures inflation thats right thats what weve been talking about for a while now because ali. Talk about deflation by the central planners was trying to hide the fact that they were involved in this grand Global Switch a roo where they made the chinese economy very rich at the expense of the American Economy and they kept making the chinese economy very rich by sending them chileans and trillions and trillions of dollars and claiming that there was deflation in america but now that china is rich there is no place to hide the money printing anymore really that was the grand money printing sinkhole of the past 20 years but there its filled up right that chinas filled up get cant any more free cash without causing inflation over there they dont want that so its going to ricochet back so now weve got the same money printing which you cant stop because the debt service is astronomical so they cant stop the money printing you can only increase the money printing sonera going to see real prices go up for stuff and theres no turning back because to turn it back would mean raising Interest Rates and that would mean an immediate 1971 like us default on its sovereign debt as they did in 1901 and no ones going to do that so the inflation jamie is popping out of the bottle well i think part of the thing that you see is back 9 171. 00 we did have huge amount of inflation and the inflation and the increasing debt load forced the government to abandon the Gold Standard gold went from 97. 00 he was worth 35. 00 an ounce by 1980 it was 850. 00 an ounce so it went up 24. 00 x. In that time extreme amount but at the same time what weve had for since 2000 really in the us since the collapse of the dot com bubble 2001 where youre seeing is increasing credit to the top one percent to the bankers to the elites so its just credit its not money printing we. Seen in of the magnitude that we had to see back when we were on the Gold Standard in the late sixtys because of the war leading into the seventys and the unrest then so what youve seen is yes i mean you could argue its been deflation because they keep on creating trillions upon trillions of debt for the same size economy and so that was always unstable but all those wealthy people used it to buy huge amounts of assets Agricultural Land properties all the cities of the world essentially them buying up the madrid leon hes in the picasso as theyve been buying up all that art now in the past year as bank of america just came out with a report saying that the u. S. Economy is going to go crazy overheating in 2021 because theres so much cash that was given to the population a large part of it has been saved because it there was nothing to spend it on and it went to a lot of people in just a spray hose fashion because a lot of people they didnt actually need it so its just sitting in their savings and theres about 3 more so here youre seeing that youre seeing that people have a lot of cash because companies are easily able they say according to these recent data survey thats done for decades you know theyre theyre saying that theyre actually able to pass it on consumers arent paf and theyre not stopping purchasing whatever these goods are like lumber lumber is theres actually a shortage of it now theyre saying theyre having difficulty finding lumber because everybodys fleeing the cities and building homes out in the rest of america because credits easy to come by so the prices are going up but there are builder and you want to go buy some lumber you just put it on credit and the interest on that credit is factored into the equation of your Business Model where you can borrow against the eventual sale pay down the debt now and youve got a positive cost to carry and all thats great and so we have a night 2008 type credit freeze as we did in 2008 and thats a guaranteed going to happen prior. 2021 credit comes to an absolute halt and forcing a cardiac arrest in the Banking System what youll be followed by the to figure later of money apply directly to the chest helicopter money trillions piped into peoples homes instantaneously at the click of a mouse and that will be yet another chapter and dimaio of empire oh all right and in the 1970 s. We had a supply crisis with oil because we had the oil embargo from the arab nations that cut off oil to the west now we have that similar you say lumber in the credit but the fact is there is a genuine supply crunch if you talk to builders and this that Market Survey did interview dozens of companies and hundreds of Companies Across america and builders are having an actual physical problem getting physical supply of lumber they cant get their hands on any so therefore you have to delay the House Building projects you have to delay if you try to find at whatever cost that cost has to go up in order to shake out some new supply of lumber so were seeing similar supply problems partly perhaps caused by the pen demick but also because of just the shoot rush sudden rush not you know plant 4 years ago about what were seeing now in america but again you know in terms of the comparison to the seventys back in the seventys there were a lot of things that were super cheap right like you could live in an apartment very easily could hitch hike across america i think which i can still eagle probably all across america at this point but you know there were a lot of things that you could do that were super cheap and food was real like it was before the whole process food sort of explosion of innovation and that sector of giving you flavored goopy stuff so you know you still got your nutrients relative. Cheap compared to what youre getting now and the Unemployment Rate member we had stagflation back then because inflation and product and goods and services were going up but jobs were the recession was hitting hard and there were a lot of Unemployed People d new york city was bankrupt new york city could be going bankrupt again by the way 300000 people left. Manhattan and the last year so inflation pressures despite a weak economy and 10000000. 00 missing jobs it is interesting that these price pressures are happening even as the overall economy is not exactly blooming with g. D. P. Down 2. 8 percent in q 3 compared to a year earlier while 10000000 jobs have disappeared according to the b. L. S. Jobs report for december amid a suddenly weakening employment and scenario since late last year you can see that in this chart but of course back in the seventys we didnt have the Printing Press we didnt because we had just gone off the Gold Standard so they central bank couldnt print money like you can today but paul volcker was not gonna write that was a difference at a central banker who knew what the role the central bank was but you know the stagflation is exactly im going back to lumber right people who want to pay the price for escalating lumber cost if they could find it but they cant because then are lying economy is being destroyed due to mal investment due to years and years of all that money printing going into pockets of the economy not being distributed based on supply and demand we had a command of control economy sense greenspan and so you have mal investment and you have kind of a soviet era mishap in the u. S. Economy this protracted be papered over with money printing resulting in the current stagflation which is reminiscent of the 1907 days except as you point out there are a few more moving parts here that we have to watch carefully because they could accelerate or as they say in the arse and business an accelerant to burn down the house a great talking head song by the way burning down the house i suggest you play that while were talking and it matches up perfectly just like if you watch the wizard of oz without the sound on but play the pink floyd album very famous pain floyd they match up perfectly. Interesting and yes thing 1970 s. Trivia therefore you yell and says you. Must act big on next Coronavirus Relief package neither the president elect nor i propose this relief package without an appreciation for the countrys debt burden but right now with Interest Rates at historic lows the smartest thing we can do is act big of course thats totally different from what we saw in the 1970 s. When manhattan went broke whats it ford say to mannheim drop dead right now now if nobody jobs said all debts are maintained all debts are kept alive all citizens get free money so thats like very different from the 97 is this what im saying that at the top of the show i said history doesnt necessarily repeat but it rhymes so there arent the exact same things we do have the unrest in the streets that we had in the late sixtys early seventys we have different obviously its a spun the wheel around and shook out the people who were protesting in the street in late sixtys and seventys are now the authoritarian police state themselves theyre the cointelpro theyre the authoritarians theyre the ones on the news parading the young people so you know there is a similarity but what yellen also went on to say in her testimony to the senate she said even though the amount of debt relative to the economy has risen the interest burden the amount the treasury pace to service that debt has not due to low Interest Rates she says she will watch that measure closely as the economy recovers so yelena saying that if the economy recovers and trust race will go up. Yeah exactly you know the thing about the 70s if they merican economy was still fundamentally strong and they could withstand those shocks but when yellen says were going to go big and fine this is going to print scads of war many many chinese war chest understand that she is pouring that money into something thats structurally broken its like a bucket what the bought of the bottom is missing it doesnt matter how many its liquidity she pours into that bucket is structurally broken its just going to come right at the bottom doesnt matter how much she pours and its the stink of the economy is fundamentally broken all the distribution all the finance everything every piece of the puzzle has been decimated by the command and control money printing psychopaths have run the economy sunscreens band and that nothings going to change that in the seventys we of course had manufacturing capacity you mentioned that from 2001 we started shipping all our jobs to china so we dont have the capacity to convert that those dollars into Wealth Creation like it just goes in to the economy so thats also radically different from the seventys so we dont know what sort of inflation this is going to cause what could happen with what bank of america and other big banks are saying that were going to see paul saying or it was on the news just this week so if were going to see 70 style inflation well remember follow the yellow brick road follow the yellow brick road were gonna take a break and well be back right after this. Join me every thursday on the alex simon chill and ill be speaking to guests of the world of Politics School business im show business. Welcome back to the kaiser report imax keyser time now to go to Lawrence Lepard he is an investment manager at Equity Management associates lawrence welcome back if you mess there is the phrase be really sell me. But a tweet from a guy about grier its of gold switzerland dot com said recently in a tweet there cant be any clearer sign that prices sky raise a possible this totally fake paper gold market whilst fake paper gold is trading 70 trillion dollars a year annual mine production is a mere 213000000000. 00 and your thoughts just go through point i mean i wanted to know that the gold market is not a real market. You know its essentially playing tool and you can see that they bombed at certain times and you know no price discovery or no person whos interested in real price discovery sells the way they sell it or she points in time so i completely agree with you interesting thing which im sure you will certain talk about a lot on your program is that you know because somebody votes you know when you know theyre hyperinflation rather blatantly and you know theres nothing they can do to control it. You know they go real problem here you go crackers and they go out and i need to share the crack up boom south this was i believe postulated by hyman minsky the problem of printing too much money is that eventually a people like we saw in the 1920 s. They jacked prices up to astronomical levels d and they used the collateral from those jacked up prices to finance more speculation and its a self feeding phenomenon its an incredible bubble ive been thinking that we are in kind of a 1920 s. Bubble at this point all the rules and regulations for the 920 s. That were absent that were then imposed during the cleanup phase in the thirtys those have all been removed and you know you got rid of the uptick rule for short selling you got rid of glass steagall you got rid of. Pretty much everything that was imposed after the crash of 29. 00 to stop the crash its back its being abused much much worse so are we looking at a 929. 00 ask crash at some point lawrence it certainly feels that way and the records i mean you know were going to need a record commissioner riddle or youre right a serial being eliminated sarah will know so we go through it much more late more its a lot more technology so you know there is aggression i mean you can see you know really work its our lives no real crisis were going on here and d you mcgregor going to so and so many ways are in syria. We wonder song and you know big dreams maybe people are you know theyre smarter you know theyre your money its 3 percent to buy real asset on leverage so its a smart move and you know its it is very similar to the twentys and i think its going to go the same way its going to try lets talk about whats happening recently a Company Called game stop but its a listed company the theres a big short position on the stock from hedge funds because theyre a dying industry its a retailer business is down so the Short Interest is quite high what the robida traders i figured out is that you can put pressure on the hedge funds by engaging whats called a short squeeze if they buy the stock then the short sellers have got to buy the stock also to close out their shorts and the stock was up 100 percent 150 percent then it was halted trading 5 times in a single day there was speculation on the downside speculation on the upside remember hertz was bankrupt and it was trading to new highs right so dont the regulators who are concerned about because i am and opening their pie hole and bleating nonsense and should maybe concern about their own backyard i mean there their markets are a joke its a farce because they the regulators are in bed with the well you know theyre the problem theyre completely exhausted i mean you know look look at all. Saying so 1000000. 00 speaking fees only illustrate that shes supposed to have been regulating units its so great that maxim made in that particular case its shocking to me i mean how is sure shares of her shares available i mean i knowing syria i mean really you know only one of you i was under the understanding she had i was sure to borrow in order to sell it short met me has a larger Short Research and then shares outstanding its all a mystery to me and its a function of the bubbly crazy environment you know nonworking environment we live with me this is just i was around 2000 this is an order of magnitude worse than rats i have a shark more stock than there is an existence as a piece of rag shall i believe its called where at the end of the day this must be a mark to market and an accounting of what shares are where look at the case of numbers figure out whos got what but the regulators down to that they pushed that they put there they say theyre understaffed and theyre they cant comply with a lot remember eric holder and obama said bankers are above the law right so everybody rasul capable of bomb a function back in office down washington right so were back say allows a fair for what i call financial terrorists some people just call them Lloyd Blankfein friends and theres going to be in the law and so this abuse by regulators will continue and getting back to gold for a 2nd so the reason why because it is being gold so badly is because its not price discovering gold lawrence its a better ma